Green Energy - Home Programs
Small Wind Systems
TEP is offering rebates for residential and nonresidential small wind systems to encourage the installation of wind power. Rebates range for both grid-tied and off-grid systems from 1 kilowatt (kW) up to 1,000 kW. Systems under 100 kW will have funding priority.
Small wind systems are best suited in areas that have a relatively high annual wind speed (10 MPH or more is recommended), low wind intermittency rates and at least a half acre of property to accommodate the wind turbine equipment.
What are the benefits of wind power?
Wind is a clean renewable energy resource that has been used for many years. Wind turbines convert energy from the wind into mechanical power which is then converted into electricity. Benefits of wind power are:
- Produces no emissions and is replenished naturally
- Reduces greenhouse gases
- Saves the release of 2 lbs. of carbon dioxide (CO2) for each kilowatt-hour (kWh) produced
- Saves the use of one-half gallon of water for each kWh of wind energy produced
- Saves the release of other emissions that result from the burning of fossil fuels such as nitrogen oxides, sulfur dioxide or mercury
- One of the lowest-priced renewable energy technologies, costing between 4-6 cents per kilowatt-hour in areas with good wind speed and low intermittency. However in Arizona the cost of wind power ranges between 8 cents per kWh to over $1.00 per kWh depending upon the wind generating system and financing options chosen.
- Provides customers with options to reduce their electric bills. For every kWh produced by your wind turbine, you will avoid about 10 cents (including taxes) on your electric bill.
- Improves energy security
Is wind generation right for me?
The decision to install a wind generator on your property should be made after you consider a variety of factors. Local building codes, local wind patterns, viewshed, machine noise, maintenance requirements and the cost of other alternative energy options such as solar, should all enter into your decision to install wind generation. In most populated areas of Arizona a solar generator is more cost effective than a wind generator. However, if you have a home or business located on a mountain ridge exposed to the prevailing winds, you could be a prime candidate for wind generation.
What rebates are available to TEP customers?
TEP provides customers with two rebate options: Up-Front Incentive (UFI) and a Performance Based Incentive (PBI).
2008 and 2009 Rebate Schedule
(1) Up-Front Incentive (UFI) provides customers a one-time payment based on their system size, which is in watts per AC (alternating current). In turn the customer would sign a credit purchase agreement assigning TEP the Renewable Energy Credits (REC) for 20 years. To qualify for the UFI your wind system must have at least a 10-year manufacturer’s warranty, otherwise your system would qualify for the Performance Based Incentive (PBI).
(2) Performance Based Incentive (PBI) provides customers with a long-term payment stream from 10 to 20 years based upon customer selection. In turn the customer would sign a credit purchase agreement assigning TEP the Renewable Energy Credits (REC) for the same number of years. To qualify for a PBI your wind system must have a material and labor warranty of at least 5 years.
Customers may qualify for federal and state tax benefits to further reduce the cost of the system. Talk with a tax professional about current incentives available to you for a renewable energy system. You can also view federal and state incentives at http://www.dsireusa.org/.
Note: TEP incentives in combination with all federal and state incentives can be no more than 85% of total project costs. A customer must cover at least 15% of total project costs.
Who is eligible for the rebates?
Grid-Tied
- You must be a Tucson Electric Power customer.
- The wind turbine must be installed at a Tucson Electric Power service address.
- You must purchase and install a qualifying Small Wind system for this rebate.
- You must purchase and install a qualifying Small Wind system for this rebate.
- The wind generator must be located within the TEP certificated service territory.
Please review the Tucson Electric Power technical requirements and qualifications in full detail. Click here.
How do I get started?
- Contact a wind installer for an estimate. Look in your phone book or on the Internet under "Small Wind Installers in Arizona."
- Fill out and submit the appropriate application for your system (click on one of the links below).
- A TEP representative will review your application to ensure it conforms to program requirements.
- Following review of your application, TEP will notify you of the status of your reservation request.
Applications:
Renewable Energy Credit Purchase Agreements
- Up-Front Incentive (UFI) – Grid-Tied Agreement
- Performance Based Incentive (PBI) – Grid-Tied Agreement
- Up-Front Incentive (UFI) Off-Grid Agreement
- Performance Based Incentive (PBI) Off-Grid Agreement
Supplemental program information
Some helpful websites
- Department of Energy (DOE) – general information
- Buyers Guide for Consumers
- Utility Wind Integration Group – general information
- American Wind Energy Association – general information
- The National Renewable Energy Laboratory
